patrick.net

robertoaribas says

yeah, if the housing market doesn't follow your forecast 95% price drop, blame it on fractional reserve banking, or FED policy, or herd mentality of all those people too dumb to understand your permadoom forecasts!!!!

Roberto, not everyone is Darrell in Phoenix LOL.

But you can't deny herd mentality existed in 2005. You sold your house into that herd right?

Yup says

Roberto have you considered the impact of the fiscal cliff on your renters ability to pay rent?

A typical 50K/year family is going to lose $2500/year starting January 1, 2013 with no changes in current law. Even if they extended the bush tax cuts, they will be losing $1000/year in increased social security payments which no one is talking about extending.

For those making 100K/year you get to double it to $5000/year.

I am betting those numbers will crush the disposable income of most families. I am betting that will crush your bet that you called the housing bottom.

Of course you are probably counting on a government handout (extending the tax cuts) so people can continue to pay you rent at the cost of ever greater deficits.

Good Luck with that!

So his rent would drop from $1,200/month to $1,000/month. He will still make money, but just be making less money. Not a deal breaker though.

BoomAndBustCycle says

You are a lunatic... Yes a $200K home is going to sell for $10K.. And at 3.5% interest a 30 year loan of $10K is $55 a month including taxes.

It happened in Detroit. If they reinflate the housing bubble they will turn the whole USA into one big Detroit.

How much does a house cost in Zimbabwe in real money?

BTW, your wooden box will still cost $200K nominal or maybe even $300K. But a loaf of bread will be $500 and a gallon of gas $700.

michaelsch says

How much does a house cost in Zimbabwe in real money?

How much does a house cost in London?